On 10 December 2019, the European Securities and Markets Authority (ESMA) published its final report on the draft regulatory technical standards (RTS) under Article 25 of the Regulation on European long-term investment funds (ELTIF Regulation).

Article 25(3) of the ELTIF Regulation provides that ESMA shall develop RTS to determine the costs disclosure requirements applicable to ELTIF managers. In March ESMA issued a consultation on the draft RTS in order to gather stakeholder input. The consultation closed in June.

The final report provides an overview of the feedback ESMA received to its consultation and sets out the next steps that ESMA will take to achieve its mandate. However, the final report does not contain final draft RTS on the basis that these depend to a large extent on the cost section of the key information documents for packaged retail and insurance-based investment products (PRIIPs), which is currently being revised in the context of the review of Delegated Regulation 2017/653 of the PRIIPs Regulation.

ESMA will assess the most appropriate way to finalise the draft RTS once the review of Delegated Regulation 2017/653 has been completed.

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